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Operations and MaintenanceMaximizing ROI
Chris Hodges, P.E., CFM, LEED AP, IFMA Fellow, FRICS
g
Principal, Facility Engineering Associates
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Evaluting your current O&M needsDefining your O&M programU d di li bili dUnderstanding reliability centered maintenance (RCM)Transforming and optimizing your currentTransforming and optimizing your current program
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Optimizing your O&M programp g y p gIntegration of RCMSuccess Stories
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Optimizing your O&M programp g y p gIntegration of RCMSuccess Stories
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WorldWorld--Class Facilities MaintenanceClass Facilities Maintenance
• What Does it Mean?• How Do You Get There?• How Do You Prove It?How Do You Prove It?
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History of MaintenanceHistory of MaintenanceHistory of MaintenanceHistory of Maintenance
1940’ B kd M i t• 1940’s Breakdown Maintenance
- Fix it after it was brokenFix it after it was broken
• 1960 Preventive Maintenance
- Fix it even if it wasn’t broken
1990 P di ti M i t• 1990 Predictive Maintenance
- Fix it when it really needs to be fixedFix it when it really needs to be fixed
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The pressure to performThe pressure to perform
External C titiEconomy
Internal Pressures Competitiony
ChangingStrategic Missions
TechnologyStrategic Missions
FacilityO&M
Funding Cultureand Decision Making Internal Competition
O&MFunding
Strategies
External Pressures
Regulatory andLife Safety
IndustryTrends
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The Maintenance ProcessThe Maintenance ProcessCustomerCustomer--Centered Facility MaintenanceCentered Facility Maintenance
Evaluate Customer Goals & Establish Desired Level of Service
Complete Equipment InventoryMeasure Customer Satisfaction & Maintenance Performance 1
28
Perform Impact AnalysisImprove Automation
& Align with Processes 37
Perform Labor Needs AnalysisEvaluate & Optimize FM Business Processes
45
6FM Business Processes
PM/PdM Program Optimization
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Establishing ParametersEstablishing Parameters1
2
3
46
7
8
gg4
56
Understanding What Your Customers Want?Understanding What Your Customers Want?
1. Define who your customers are . . .
2. What are their expectations
E t i Mi iE t i Mi i St t i PlSt t i Pl•• Enterprise Mission Enterprise Mission –– Strategic PlanStrategic Plan
•• Facilities Strategic PlanFacilities Strategic PlanFacilities Strategic PlanFacilities Strategic Plan
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The Financial Case for O&MThe Financial Case for O&M
Typical design and construction costs account for only about 2% of an organization’s total cost to existabout 2% of an organization s total cost to exist.
Life-Cycle Costs of a Facility
The Cost of ProductivityAverage annual cost for Personnel: $300 600/sf
92%
6% 2% Personnel: $300-600/sf
Ownership Cost: $20-25/sf
O&M: $5 00-7 00/sf92%
Salaries ofOccupantsCost of Operatingand Maintaining
O&M: $5.00 7.00/sf
and MaintainingOriginal Designand Construction
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The Financial Case for O&MThe Financial Case for O&M
Corporate Headquarters Model
This represents the growth in total cost of $120,000,000
$140,000,000
Total Cost of Ownership
ownership over 50 years
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$-
$20,000,000
0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48
Year
Item Value SourceGSF 145,025 IFMA Report #32
Construction $/SF $ 165.43 CostWorks 2011Capital Renewal 1.55% IFMA Report #32Capital Renewal 1.55% IFMA Report #32
O&M $/SF $ 6.37 IFMA Report #32Inflation 1.5% Inflation Calculator
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The Financial Case for O&MThe Financial Case for O&M
In Terms of Total Dollars …
Total Cost of Ownership
20%Design & Construction
23%57%
Design & Construction
Capital Renewal
O&M
Total Cost
Design & Construction 20% $ 23,991,486
Capital Renewal 23% $ 27,400,288
O&M 57% $ 68,068,878
$Total Cost of Ownership 100% $ 119,460,652
At the building level
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Life Cycle Cost... Life Cycle Cost... Impact of Strategic Impact of Strategic O&MO&Myy p gp g
Opportune Time to Invest
100
75$
Less Dollars to Fix
75
50
$
50
25
More Dollars to FixReplacement Threshold
25
0
$ Benefit $
230 5 10 15 20 25 18
At the component level
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Facility Maintenance and RepairFacility Maintenance and Repair
DefinitionsDefinitionsDefinitionsDefinitions
Facility Maintenance
Un-planned PlannedCorrective Maintenance Preventive MaintenanceBreakdown MaintenanceReactive Maintenance
Equipment FailureService Requests
Predictive MaintenanceRoutine Maintenance
Planned EventsInspectionsq
Deferred MaintenancePassive Monitoring
pRoutes/Tours/WatchesCondition Monitoring
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Facility Condition Index (FCI)Facility Condition Index (FCI)
FCI = DM ($)/ RPV ($)FCI = DM ($)/ RPV ($)FCI = DM ($)/ RPV ($)FCI = DM ($)/ RPV ($)Notes:
DM = Deferred MaintenanceDM = Deferred Maintenance
RPV = Replacement Plant Value also Current Replacement Value (CRV)
Poor
G d
Poor
Fair
Good
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Establishing ParametersEstablishing Parameters1
2
3
46
7
8
Maintenance Staffing GuidelinesMaintenance Staffing Guidelines4
56
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Benchmarking O&MBenchmarking O&M
Percentile $/RSF99 $24.8595 $17.5390 $12.4175 $7.6575 $7.6550 $5.5925 $3.7910 $2 6410 $2.645 $1.981 $1.42
Mean $6.16
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Optimizing your O&M programp g y p gIntegration of RCMSuccess Stories
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Maintenance Philosophy & MissionMaintenance Philosophy & Mission
How does “Reliability” fit in?
R li bilit t d i t i hil hReliability-centered maintenance is a philosophy to develop the most effective maintenance program to ensure that our facilities both operateprogram to ensure that our facilities both operate and appear at their best while pursuing the driving goal of caring for the organization’s people, g g g p p ,workplace, and budget.
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ReliabilityReliability--Centered Centered Maintenance Maintenance (RCM)(RCM)
High $
(RCM)(RCM)
Optimal Maintenance
Lost Productivity
*
Downtime CostsDowntime Costs
nanc
e st
s
Repair CostsRepair CostsMai
nten
Cos
Excessive PM*
Cost of PMCost of PM
Low $0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Low $Low HighLevel of Maintenance
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ReliabilityReliability--Centered Centered Maintenance Maintenance (RCM)(RCM)
PREVENTIVE PREDICTIVEPREVENTIVE PREDICTIVE
PROACTIVE DEMAND
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Implementation of RCM: Implementation of RCM:
1. ID Systems and Equipment to Maintain2 Determine Criticality and Performance2. Determine Criticality and Performance3. Evaluate Probability of Failure4 D t i F il M d d Eff t4. Determine Failure Modes and Effects5. Select Best Maintenance Plans6. Implement Maintenance7. Optimize Program7. Optimize Program
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Reality and Value of RCMReality and Value of RCMReality and Value of RCMReality and Value of RCM
• Labor Intensive PM Programs
• Problems with Human Interaction
• R d F il M d• Random Failure Modes
• Proactive / Cost-Effective – RCM
• Diagnostic-based
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Improve Effectiveness and ReliabilityImprove Effectiveness and Reliabilityp yp y
• Identifying hidden defects before failure or damage occursdamage occurs
• Using real time data for comparison and trendingtrending
• Non-destructive means of monitoring equipment condition without invasive time based O&M
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Optimizing your O&M programp g y p gIntegration of RCMSuccess Stories
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RCM Successes at SmithsonianRCM Successes at SmithsonianRCM Successes at Smithsonian RCM Successes at Smithsonian InstitutionInstitution
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SI Maintenance PhilosophySI Maintenance Philosophy
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WorldWorld--Class FM InnovationClass FM Innovation
Courtesy of Smithsonian Institution, OFMR (2010)
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SI Maintenance PhilosophySI Maintenance Philosophy
“Th i ht i t th i ht“Th i ht i t th i ht“The right maintenance on the right “The right maintenance on the right equipment at the right timeequipment at the right time””
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Predictive Testing and Inspection (PT&I)Predictive Testing and Inspection (PT&I)
OFMR Zone PT&I Toolkits
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Predictive Testing and Inspection (PT&I)Predictive Testing and Inspection (PT&I)
PT&I Type What is it? Why use it? What equipment?
Vibration Monitoring & Analysis Measures vibration
ID rotor imbalance, misalignment, and bearing
wear
Motors, pumps, fans (rotating equipment)
Infrared f /ID hot/cold spots caused by Electrical equipment,Infrared
Thermography (IRT) Photo of heat/temp. loose or dirty connections or leaks
Electrical equipment, roofs, facades
Oil Analyses Sampling and analyzing lubricating oil
Evaluate lubricant degradation, contamination
and ID machine wear
Generators, chillers, elevatorsand ID machine wear
Airborne Ultrasonics Detects sounds beyond human hearing Detect leaks
Compressed air, gas, steam, and vacuum
systems
Motor Circuit Analysis (MCA)
Tests electrical attributes of motors
Determine condition of motors New and rebuilt motors
Laser Alignment Measure alignment of ID misalignment Pumps, motors, fans, Laser Alignment shafts and pulleys ID misalignment shafts and pulleys
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Ult iUltrasonics
How it is used at SI…How it is used at SI…How it is used at SI…How it is used at SI…Mechanical and electrical inspections.Airborne leak surveys ofAirborne leak surveys of…• Compressed air systems.• Gas and steam systemsGas and steam systems.• Negative pressure (vacuum) systems.• Non-pressurized systems (tone generators).p y ( g )
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Airborne Ultrasound
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Vibration Screening & AnalysisHow it is used at SI…How it is used at SI…How it is used at SI…How it is used at SI…
Critical rotating equipment.Screening & TrendingScreening & Trending.ID deteriorating conditions.
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Infrared Thermography (IRT)How it is used at SIHow it is used at SIHow it is used at SI…How it is used at SI…
Electrical & Mechanical Equipment.Facades / Exterior ElementsFacades / Exterior Elements.
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Lubricating Oil AnalysisHow it is used at SIHow it is used at SIHow it is used at SI…How it is used at SI…
Emergency generators.H d li lHydraulic elevators.Chillers.
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Laser Sheave AlignmentQuickly ascertain and correct angular andQuickly ascertain and correct angular and offset misalignment between the pulleys.
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Laser Sheave AlignmentHo it is sed at SIHo it is sed at SIHow it is used at SI…How it is used at SI…
Sheave alignment.Belt-driven equipment.
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Motor Circuit Analysis (MCA)Ho it is sed at SIHo it is sed at SIHow it is used at SI…How it is used at SI…
Motors.Other power circuits. Predisposition for infant mortality.
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Laser Shaft AlignmentAlignment of pump and motor shaftsAlignment of pump and motor shafts.Correct offset and angularity.
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RCM and PT&I Success StoriesRCM and PT&I Success StoriesRCM and PT&I Success StoriesRCM and PT&I Success Stories
• Cost Avoidance• Documented Processes• Documented Processes• Increased Uptime• Improved Safety
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RCM Successes at SI
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RCM Successes at SI
S T P fSteam Trap Performance Testing
Condition-Based Lubrication Program
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RCM S SIRCM Successes at SI
Star-Spangled Banner Exhibit (NMAH)
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Optimizing your O&M programp g y p gIntegration of RCMSuccess Stories
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Use the tools of the trade
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Don‘t ignore the finance piece
Th i ht i t t th i ht ti• The right maintenance at the right time:• Saves Labor
Prolongs service life• Prolongs service life • Saves energy• Reduces downtime• Reduces downtime• Maintains business continuity
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Measure, measure, measure, ,
• The right KPIs:g• PM, CM, DM• Integration of RCMIntegration of RCM• Work management• Downtime
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Chris Hodges, P.E., CFM, LEED APPrincipalFacility Engineering AssociatesFacility Engineering [email protected]